USDA to Gather New Data on Certified Organic Agriculture Production

USDA's National Agricultural Statistics Service is conducting the 2021 Organic Survey to gather new data on certified organic crops and livestock commodities in the United States. USDA says the effort is critical to help determine the economic impact of certified organic agriculture production on the nation. NASS is mailing the survey to all known certified organic farms and ranches within the 50 states. The questionnaire asks producers to provide information on acreage, production, and sales, as well as production and marketing practices. A USDA NASS spokesperson says, "We continue to receive requests for updated data on organic farms, especially to measure growth in the production sector of the organic industry." According to the 2019 survey, U.S. certified organic producers sold a total of $9.93 billion in products, up 31 percent over 2016. Participants should respond by April 4. Producers can return their questionnaires by mail or complete them online at www.agcounts.usda.gov using the new Respondent Portal.

EPA Takes Next Step to Keep Chlorpyrifos Out of Food

The Environmental Protection Agency Monday announced the next step to discontinue use of chlorpyrifos (Klohr-PEER-uh-fohs) on food by denying objections to EPA’s rule revoking all chlorpyrifos tolerances. An EPA spokesperson says, “EPA is taking the next step towards the cancellation of the use of chlorpyrifos on food.” In August 2021, EPA issued a final rule revoking all tolerances — which establish an amount of a pesticide that is allowed on food — for chlorpyrifos. Previously, chlorpyrifos was used for a large variety of agricultural uses, including soybeans, fruit and nut trees, broccoli, cauliflower, and other row crops. EPA says it has been found to inhibit an enzyme, which leads to neurotoxicity, and has also been associated with potential neurodevelopmental effects in children. Under Monday’s action, EPA is denying all objections, hearing requests, and requests to stay the final rule filed during the period for submitting responses to the final rule.

Chevron Acquiring Renewable Energy Group

Chevron Corporation and Renewable Energy Group, Inc. announced Monday a definitive agreement under which Chevron will acquire the outstanding shares of Renewable Energy Group. The all-cash transaction is valued at $3.15 billion, or $61.50 per share. Company leadership says the acquisition combines Renewable Energy Group growing renewable fuels production and leading feedstock capabilities with Chevron's large manufacturing, distribution and commercial marketing position. Chevron Chairman and CEO Mike Wirth says, "Together, we can grow more quickly and efficiently than either could on its own." The transaction is expected to accelerate progress toward Chevron's goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities. After closing the acquisition, Chevron's renewable fuels business, Renewable Fuels - REG, will be headquartered in Ames, Iowa. Renewable Energy Group operates 12 biorefineries and a feedstock processing facility and is the largest U.S. producer of biomass-based diesel.

Producer-Led RIPE Expands Steering Committee

Rural Investment to Protect our Environment, or RIPE, announced Monday the National Black Growers Council recently joined its steering committee. RIPE Executive Director Aliza Drewes says, “The council’s mission of advocating for Black farmers with a focus on sustainability aligns with RIPE’s focus of creating a strong climate policy that works for all farmers and ranchers.” RIPE is self-described as a producer-led nonprofit advancing a groundbreaking, bipartisan climate policy plan that works for producers and the public. Through payments of $100 per acre or animal unit, the RIPE100 plan would reward producers for the total public value of their conservation practices, including no-till and cover crops. In addition to carbon sequestration, the voluntary federal program would pay for improved soil health, cleaner water, biodiversity and other environmental services. Payments would also help farmers and ranchers manage rising input costs, such as fertilizer, due to climate policy while giving them a reasonable return.

Food Insecurity Rates Vary Across States

USDA Economic Research Service data released Monday shows food insecurity rates vary across U.S. states. The estimated prevalence of food insecurity during 2018–20 ranged from 5.7 percent in New Hampshire to 15.3 percent in Mississippi. The estimated national average was 10.7 percent. The prevalence of food insecurity was significantly higher than the national average in nine states, including Alabama, Kentucky, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas and West Virginia. Food-insecure households are defined as those that had difficulty at some time during the year providing enough food for all their members because of a lack of resources. USDA monitors the extent of food insecurity in U.S. households at the national and state levels through an annual U.S. Census Bureau survey. State-level estimates are then obtained by averaging three years of data to generate more reliable statistics. State food insecurity rates vary because of state-level characteristics such as population, policies, and economic conditions.

Invasion Sparks Increasing Fuel, Oil Prices

The Russian invasion of Ukraine boosted fuel prices last week. For the ninth straight week, U.S. fuel prices increased, with gas claiming 7.5 cents to an average of $3.59 per gallon, according to GasBuddy. The national average is up 23.2 cents from a month ago and 87.6 cents per gallon higher than a year ago. The national average price of diesel increased 5.5 cents in the last week and stands at $3.98 per gallon, the highest since March 23, 2014. GasBuddy’s Patrick De Haan says, “The Russian invasion of Ukraine has sparked high level concern that oil production could eventually be stifled, or even sanctioned, from the world’s second largest oil producer, leading to less supply as demand grows.” That comes at a time of year when seasonality issues push gasoline prices up by anywhere from 25 to 75 cents by Memorial Day. De Haan says, “it’s looking like a perfect storm,” adding, there is “little to no relief anytime soon.”

Tuesday Watch List

Markets

Traders remain attentive to the latest weather forecasts and are eagerly following events in Ukraine. The Institute of Supply Management's index of U.S. manufacturing will be out at 9 a.m. CST. The monthly report of U.S. soybean crush in January will be revealed in the Fats and Oils report from NASS at 2 p.m. CST.

Weather

On the first day of meteorological spring, it will feel like it for most areas of the country. A stationary boundary continues to sit near the northern border and may remain active with some light and spotty showers, and waves of precipitation continue in the Pacific Northwest. But the rest of the country will be dry and mild with above normal temperatures.